Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 Index called to open -5pts at 7705, back from yesterday’s upside test, but still holding within challenging distance. Bulls need a break above 7720 for another attempt at a breakout. Bears require a breach of 7690 for a fall back to 7660 rising support. Watch levels: Bullish 7720, Bearish 7690

Calls for a negative open come after another choppy session in Asia as the perceived benefit of China stimulus waned and Wall St closed mixed with Tech only managing to close flat while the Dow and S&P posted healthy advances.

Oil prices are higher after last night’s API report and a bit of USD weakness, helping resources stock in Asia, although after strong gains on China stimulus hopes yesterday UK Index Miners names may not necessarily follow suit.

Corporate news this morning includes Antofagasta Q2 copper production +6.1% QoQ (H1 -8.5%), gold +22.1% QoQ (H1 -35.8%), cash costs -7.5%, FY copper production guidance unchanged. 3i Group Q1 NAV +5.1%. Fresnillo Q2 silver production +5.7%, Gold +4.6%; Full year gold production guidance upgraded by 3.3% but silver cut by 3.5%.

Vodafone group revenues -4.9% (EU -4%) due to accounting changes and FX headwinds. Q1 Organic service revenues +0.3%-1.1%; Europe -1.3%, India -22.3%; Guidance reiterated. Croda H1 revenues -0.6% blamed on FX headwinds, pre-tax profit +1.7%, interim dividend +8.6%. FY guidance unchanged.

ITV advertising revenues +2% (online +48%), Studio revs +14%, group adj. EBITDA -7% (advertising -12%, studios +7%); div +3%; Studios to deliver good FY organic revenue growth; Online to grow strong double digits; advertising to grow 1% in 9M with Q3 flat.

Informa H1 like-for-like revenues +4.3%, adj. op. profit +1.9%, interim div. +6%, H2 outlook suggests lower growth, confident in meeting ambition for >3.5% full year underlying revenue growth. Indivior H1 like-for-like net rev. -7% adj. op profit -34%, unable to issue new FY guidance after it was withdrawn on 11 July.

Metro Bank raises £300m via 10% share placing. H1 deposits +40%, lending +55%, revenues +45%, underlying pre-tax profit +301% (not a typo), NIM -12bp (-6bp from Dec), accounts +17% since Dec. Marston's reiterates FY guidance; benefited from dry sunny weather and World Cup. Qinetiq underlying trading as expected during Q1, no change to full year expectations.

Wizz Air Q1 passengers +19.7%, revenues +17.9%, operating profit -2.8%, net profit -14% hurt by Easter timing and disruption; Capacity guidance reduced, profit guidance unchanged. Tullow Oil H1 revenues +14.8% YoY, free cash flow +95%, FY oil production guidance upgraded to 89-95K bpd, $460m capex unchanged.

In focus today will be the Trump/Juncker US-EU meeting in Washington, an attempt to resolve the recent trade confrontation. Trump is looking for concessions on EU exports to the US (especially cars). Juncker wants a full suspension of US tariffs before any deal can be agreed.

No Prime Minister’s Questions (PMQs) today due to the parliamentary summer recess but Brexit remains front and centre, especially after the PM’s decisions to take personal charge of negotiations of the EU Withdrawal process, side-lining newly-minted Brexit minister Dominic Raab. Markets continue to look for clarity and workable solutions, both at home and for Brussels.

In terms of macroeconomic data, German IFO Surveys (9am) are seen falling to their lowest since Q1 2017. UK BBA Mortgage Approvals (9:30am) are projected slightly lower in June, but holding above the Q1 average. Watch UK Index Banks and Housebuilders for read-across, as well as potential for preview of the Bank’s own Q2 results next week.

This focus shifts to energy markets, with DOE Crude Oil Inventories (3:30pm) expected to show another draw to  reverse last week’s surprise build, echoing across-the-board bigger than expected drawdowns in last night’s API report. Keep an eye on oil markets, as well as Energy shares.

Watch out for Q2 results from aerospace giants Boeing and Northrop Grumman for read-across to the UK’s defense sector, while major copper producer Freeport-McMoRan could have knock-on for UK Index Miners.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.